More than a third of financial advisors plan to retire within the next decade, representing 105,887 advisors overseeing 41.4% of total industry assets, according to Cerulli Associates. These numbers underscore an urgent need for effective succession planning—yet many advisors are unprepared. This gap presents an incredible opportunity for independent broker-dealers to step in and expand their value proposition by offering robust support services.
At FindBob, we’re tackling these challenges head-on, providing solutions that empower enterprises and advisors to navigate succession, continuity, and growth with confidence.
The Succession Planning Problem
Cerulli’s findings reveal some startling statistics:
- 26% of advisors nearing retirement have no definitive plan for their book of business. For independent registered investment advisory (RIA) firms, this number rises to 30%.
- 86% of advisors cite difficulty finding a qualified buyer, 63% struggle with structuring deal terms, and 53% are unsure how to value their practices.
- Buyers face their own challenges, with 67% identifying time constraints as a barrier to closing deals and 53% reporting difficulties in negotiations.
Despite these hurdles, 48% of advisors are interested in acquiring a firm, with 19% actively seeking opportunities. The demand is clear, but the execution is complicated.
How Independent Broker-Dealers Can Lead the Way
Independent broker-dealers are uniquely positioned to support advisors by offering services that address these pain points. By stepping into this role, they can:
- Provide Expert Valuation Services: Helping advisors accurately assess the worth of their practices.
- Facilitate Buyer-Seller Connections: Creating a platform where advisors can find qualified buyers within their network.
- Guide Deal Structuring: Offering templates and advisory services to streamline negotiations.
- Support Client Retention: Assisting acquiring firms in maintaining high-quality client experiences to ensure the smooth transition of books of business.
At FindBob, our platform is built to help enterprises provide these exact services, enabling broker-dealers to expand their value proposition and retain more assets under management.
The FindBob Solution
FindBob’s retention enablement platform is designed to address both advisor and enterprise challenges:
1. Advisor Volatility Index (VIX)
Our Advisor VIX tracks advisor sentiment and flight risk in real-time, giving broker-dealers insight into which advisors might be nearing retirement or disengagement. This helps firms take proactive steps to retain high-value advisors and assets.
2. Marketplace Functionality
FindBob’s private white-labelled marketplace connects buyers and sellers, simplifying the process of finding the right match. Advisors can list their books anonymously, explore potential buyers, and initiate secure discussions.
3. Valuation and Deal Structuring Tools
We provide advisors with easy-to-use valuation tools to demystify their practice’s worth. Our deal structuring templates ensure both parties have the resources they need to negotiate fair and efficient transactions.
4. Continuity Planning
For advisors who aren’t ready to sell but want to safeguard their practice, FindBob offers continuity planning tools that ensure clients and books of business remain protected in the event of an unexpected exit.
5. Talent Calibration
Our AI-driven talent calibration feature identifies and nurtures potential successors, enabling firms to build pipelines of future advisors. This ensures a smooth transition and continuity for clients.
Keeping Humans in the Loop
While technology plays a critical role in succession planning, it’s equally important to empower home office professionals who have deep relationships within their distribution and unmatched expertise. These individuals bring invaluable insights and personal connections that no algorithm can replicate.
FindBob’s platform is designed to augment—not replace—their work. By automating repetitive tasks like data gathering, valuation calculations, and basic outreach, we free up these professionals to focus on what they do best: building trust, fostering relationships, and providing personalized guidance. With FindBob, home office professionals can:
- Spend more time on strategic discussions with advisors.
- Leverage insights from tools like the Advisor VIX to prioritize their efforts effectively.
- Tailor solutions for advisors based on a deep understanding of their unique needs and goals.
By keeping humans at the center of the process, we ensure that advisors and their clients receive the care and expertise they deserve while maximizing the value of enterprise resources.
Why It Matters
Without structured succession plans, books of business are at risk of disruption, which can harm clients and reduce enterprise value. Independent broker-dealers who invest in solutions to facilitate these transitions stand to gain a competitive edge, retaining more assets and building stronger advisor relationships.
At FindBob, we believe succession planning doesn’t have to be murky. By leveraging tools like the Advisor Volatility Index, marketplace functionality, and AI-driven insights, enterprises and advisors can turn challenges into opportunities.
Let’s work together to ensure advisors can retire with confidence, clients remain well-served, and firms protect their most valuable asset—their people.
If you’re ready to learn more about how FindBob can support your organization’s succession planning needs, let’s talk!
